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What is an Auto Warranty?

Auto warranty is a kind of insurance coverage that is essential at any time and at any hour for the owner of a new or used car. It provides a sense of relief to the owner of a car at the time of unexpected breakdown or damage.

But while purchasing any type of warranty, one should be aware of all the aspects that are covered in it, such as the coverage it provides, the terms and conditions of the auto warranty, as well as its time duration.

There are different types of auto warranties that are available for new as well as old cars. These warranties can be purchased directly from a car dealer or private insurance companies. A buyer can purchase these warranties directly from the car dealers or from private insurance companies.

The new car warranties provide coverage for car damages and servicing. It is a combination of general warranty and powertrain warranty. The general warranty provides the coverage for all the damages that occur from bumper to bumper. But when the new car warranty expires, a powertrain warranty becomes effective as it provides coverage for mechanical breakdowns. Engine and the parts related to the engine and the wheels are covered under these warranties.

Unlike the new car warranties the used car warranties provide coverage for various types of mechanical and body problems that occurs after its long usage. There are various companies like Auto Advantage, Inc., and American International Group, Inc., who provide a wide array of services, including repair and servicing of vehicle at free of cost for a specific period of time. These companies also offer a choice to car buyer to choose from different types of warranties as per buyer's requirement.

So, while purchasing a new or used car the buyer must choose the appropriate warranty, as it will save his money that is wasted on mechanical repairs.

Contributing Author: Sumana Sikdar





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